Cisco targets revenue of $13.6 bn during current quarter

Cisco has revealed its financial result, saying its revenue fell 13 percent to $12.7 billion with net income of $1.9 billion for the third quarter ended April 27, 2024.
Cisco networking businessThe significant drop in revenue reflects cut in technology spending by enterprises. Cisco’s revenue has fallen for two straight quarters now, as it deals with an inventory backlog.

Cisco is aiming for revenue of $13.4 billion – $13.6 billion during the current quarter.

There is potential for aggressive pricing strategies to reduce inventory levels, which could put pressure on margins through the rest of the 2024, Joe Brunetto, analyst at Third Bridge, said.

Cisco, which completed the acquisition of Splunk — in a $28 billion deal — in order to enhance its cybersecurity capabilities, said Splunk contributed $413 million of total revenue for the third quarter of fiscal 2024.

Cisco has generated sales revenue of $7.372 billion (down 15 percent) from Americas, $3.458 billion (down 9 percent) from EMEA, (down 12 percent) from Asia Pacific Japan China.

Cisco has generated sales revenue of $6.522 billion (down 27 percent) from Networking, $1.304 billion (up 36 percent) from Security, $987 million (flat) from Collaboration, $211 million (up 27 percent) from Observability and $3.678 billion (up 6 percent) from Services during its third fiscal quarter.

“Our unique ability to bring together networking, security, observability, and data enables Cisco to offer our customers unrivaled digital resilience for the AI era,” said Chuck Robbins, chair and CEO of Cisco.

Gary Steele

Cisco has named Gary Steele as President of Go-to-Market, effective immediately. Gary Steele will work closely with Chuck Robbins to set and execute against Cisco’s strategic plans and goals. Gary Steele will continue to lead the Splunk team through the integration process to ensure a seamless integration into Cisco.

Cisco also announced that Jeff Sharritts, Cisco’s Chief Customer and Partner Officer, will depart Cisco after a 24-year career at the company.

Baburajan Kizhakedath

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